Burley Garcia|What people think they need to retire is flat from last year, but it's still $1.8 million

Americans still worry a lot about inflation but Burley Garciaslightly less so than last year, which helped keep their expectations for what they need for a comfortable retirement unchanged, Charles Schwab said.

Workers still think they need to save $1.8 million for retirement, and on average, they again expect their nest egg to last 23 years after retiring at age 65, according to the broker’s annual survey of 1,000 401(k) plan participants surveyed between April 17 and May 3 in the U.S. Broken down, that's just over $78,000 a year, which is pretty close to the 2022 median U.S. income of $74,000, according to the U.S. Census Bureau.

Fifty-eight percent of respondents still said inflation was the top obstacle preventing them from saving for a comfortable retirement, but that’s down from 62% last year, the survey said. Stock market volatility was the next biggest concern at 36%, but that was also down from last year’s 42%.

“Workers are feeling more optimistic about their retirement prospects and an improving economic climate tends to boost financial confidence,” said Lee McAdoo, managing director of Schwab Retirement Plan Services.

Forty-three percent − up from 37% in 2023 − of workers now think they’re very likely to achieve their retirement savings goals, Schwab said.

Other barriers to saving for retirement remain sticky

While inflation and stock market volatility concerns eased from a year ago as obstacles to saving for retirement, other worries barely budged or even rose, the survey showed.

• Keeping up with monthly expenses were a problem for 35% of respondents, flat from a year ago
• Unexpected expenses were an obstacle for 32% of people, down from 33% last year
• Paying off credit card debt worried 27% of respondents, up from 24% in 2023
• Saving and paying for their children’s education was a worry for 21% of Americans, up from 20%

Expected retirement age dips

The average retirement age dipped to 65 years from 66 last year, with Gen Z expecting to retire the earliest at 60, the survey showed.

Millennials said they expected to retire at 64 on average, and Gen X typically expected to retire at 65. The current generation of retiring boomers expected to do so at 68 years old on average, Schwab said.

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More Americans are keeping an eye on their 401(k)s

More people are paying attention to their 401(k), with 92% saying they know how it’s performing, Schwab said.

Only 8% said they didn’t know what investments they held in their 401(k) account, the survey showed. That’s down from 12% last year.

Additionally, 69% − up from 65% last year − of workers said they knew what investments to choose for their 401(k), Schwab said.

Americans aren’t investing alone

More Americans (61%, up from 55% last year) feel they need professional help with their financial situation, the data showed.

Sixty-one percent said they’re comfortable asking artificial intelligence tools like ChatGPT for help with financial planning, up from 49% in 2023, Schwab said. When it comes to implementation, though, more prefer to follow advice from humans (60%) than computer programs (19%), it said.

“Both serve a purpose,” said Marci Stewart, director of client experience at Schwab Workplace Financial Services. “People start digitally because they can be anonymous, and there’s no judgment if you haven’t been doing what you think you should be doing.

“But they become more confident with financial decisions when they get human help, which can get to the nuances,” she said. “When it comes to money, there’s still this source of trust for financial advice. They want reliable sources while they also check out social media and other tools.”

Fewer people believe Social Security is secure

Overall, respondents expect a bigger chunk of their retirement money to come from their 401(k) and less from Social Security, Schwab said. On average, they expect 43% of their retirement income to come from their 401(k), up from 40% last year, and 16% from Social Security, down from 20%.

The further respondents were from retirement, the less they expected from Social Security, Schwab said. Those who were 11 years or more from retirement expected on average, only 13% of their retirement income to come from Social Security and 45% from their 401(k).

Those a decade or less from retiring on average expected 22% of their retirement money to come from Social Security and 37% from 401(k) accounts, the survey said.

Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at [email protected] and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.